Annual Report 2007 - LivePerson

LIVEPERSON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands, Except Share and per Share Data)
(1) Summary of Operations and Significant Accounting Policies − (continued)
The changes in the carrying amount of goodwill for the year ended December 31, 2006 are as follows:
Total
Business
Balance as of December 31, 2005 ......................... $ — $ —
Adjustments to goodwill:
Acquisitions. .................................... 9,673 9,673
Balance as of December 31, 2006 ......................... $9,673 $9,673
Intangible assets are summarized as follows (see Note 2):
Acquired Intangible Assets
Gross
Carrying
Amount
As of December 31, 2007
Weighted
Average
Amortization
Period
Accumulated
Amortization
Amortizing intangible assets:
Technology ............................. $5,410 3.8 years $ 807
Customer contracts/customer lists .............. 2,633 2.9 years 1,334
Trade names ............................ 630 3.0years 53
Non-compete agreements. ................... 410 1.2years 151
Other ................................. 235 3.0years 20
Total. ............................... $9,318 $2,365
Gross
Carrying
Amount
As of December 31, 2006
Weighted
Average
Amortization
Period
Accumulated
Amortization
Amortizing intangible assets:
Customer contracts/customer lists .............. $5,082 2.9 years $2,868
Technology ............................. 500 1.5years 151
Non-compete agreements. ................... 164 2.0years 87
Total. ............................... $5,746 $3,106
Amortization expense is calculated on a straight-line basis over the estimated useful life of the asset.
Aggregate amortization expense for intangible assets was $1,772, $1,383 and $931 for the years ended
December 31, 2007, 2006 and 2005, respectively. Estimated amortization expense for the next five years is:
$2,634 in 2008, $1,954 in 2009, $1,444 in 2010, $921 in 2011 and $0 in 2012.
(2) Asset Acquisitions
Base Europe
On June 30, 2006 the Company acquired the customer list of Base Europe, a former reseller of its
services. The purchase price was $233. The agreement gives the Company the exclusive right to exploit a
specific list of deal referrals from Base Europe. The entire purchase price will be amortized ratably over a
period of 24 months. The net acquisition costs of $58 and $175 are included in ‘‘Assets — Intangibles, net’’
on the Company’s December 31, 2007 and 2006 balance sheets, respectively.
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